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When entering the China market, a well-planned, strategic visit by key executives can help companies to get ahead and get a better overview on the opportunities and challenges China has to offer.
selective international management
26 February 2012
executive visits in China

sim (selective international management)
王隆（上海）商务咨询有限公司
7/F A Mansion, Unit 706
291 Fumin Road
Shanghai 200031, P.R.C.
中国上海市富民路 291
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Tel 联系电话: +86 (21) 3319 9933
Fax 传真号码: +86 (21) 6170 1389
Ema il 电子邮箱: info@sim.biz
web: www.sim.biz 2012/2/27
Executive visits in China
When entering the China market, a well-planned, strategic visit by key
executives can help companies to get ahead
executives can learn through their own
experiences, as well as by building up a
The China market’s potential is
network of contacts and connections.
legendary, but not every foreign-
They will then have a much stronger
invested company will find success
platform from which to make the right
here. A lack of knowledge, unexpected
choices in good time.
complications or simple bad luck can
force a new business to review their
Seeing is Believing
strategy or even to close. Such
unfortunate experiences can turn out to
There is often a wide gap between
be very costly for a company, leaving a
outsiders’ perceptions of China, and the
dent in their finances and their
reality. Information about the country’s
reputation. They can also inflict serious
rapidly evolving business environment
damage on their corporate structure,
ages quickly, and many accounts are
and cause them to miss out on many
highly subjective. A close encounter
potentially lucrative opportunities.
with the opportunities and challenges
Businesses which are new to China
facing a business here can be very
should do their best to avoid these
helpful when foreign executives need to
pitfalls by getting to grips with the
get a handle on what is really going on.
realities of the China market as quickly
For example, exploring the latest
as possible. One way of doing this is to
statistics is often an important part of
arrange for the company’s key
the initial research into a new market.
executives to come to China very early
But experiencing the number of people
on in the set-up process, so that they
walking along the streets of a Chinese
can really get to grips with the business
city such as Shanghai or Beijing and
environment. These visits need to be
seeing the mass of shoppers on their
more than simple business trips – they
commercial streets allows an executive
have to be well-planned, focused
to develop a deeper impression of the
learning opportunities.
potential sales the company could
achieve.
An Informed Decision
Get Connected
Should a company enter the Chinese
market, and if so how? Through first
The right connections will also help.
tier cities, or lower tier cities, in the
Valuable insights from other
north, or in the south? Which legal
professionals with relevant experience
structure is the most beneficial, and the
can allow the newcomer to get a clearer
least risky for the business in China: a
picture of their potential partners and
WFOE, JV, or Representative Office?
suppliers, and their reliability. It could
Such decisions will have major
also help them to understand clients
consequences on the company’s future
and customers, and their needs. The
activities in and with China. But once
right connections are also valuable in
the decision has been made and applied
China given the great importance of
it is very costly to take a step back, and
relationship, or guanxi, in local culture
there are plenty of competitors ready to
and particularly within the business
take great advantage if someone else
community. Chinese partners and
makes a mistake. The ability to make
important clients appreciate and place
these decisions in an efficient way is
great importance on the relationship
also vital. While rash decision making is
they have with the executives of a
never advisable, companies taking too
foreign company. The relationship may
much time to consider these questions
even be considered more important
might see their potential market share
than the business itself in some cases.
diminishing – even if, in the end, they
To foster such relationships, it is
make wise decisions. Executive visits
important that the executives of a
are a powerful tool for gaining inside
foreign company participate at least
knowledge at an early stage, so that
once in a face-to-face meeting with
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their Chinese counterparts, so that they
Hidden Potential
feel respected, valued and trusted as
partners. In addition, as in any culture,
These different ways of capitalising on a
good relationships allow the
key executive’s visit are often
development of sustainable and trusted
undervalued. A company that learns to
partnerships which are always essential
make full use of the opportunity to
factors for a successful business
deepen their leaders’ knowledge and
venture not only in China, but all over
strengthen the decision making process
the world.
will feel the benefits.
A Late Visit
About the Author:
Executive visits are not only useful for Aurélie Diller is head of marketing and
companies seeking to launch a new branding at sim (selective international
business in or with China; they are also management), a Shanghai-based, Swiss
extremely helpful for those who have consulting company. sim is specialised
already established their business here. in providing sustainable management
The company could increase its visibility solutions for foreign companies entering
through the key executives’ the Chinese market, and a strong
participation in conferences and other platform in Europe for Chinese
activities. The executives themselves investors.
also gain the chance to receive insights
into the success of their products and
services in China direct from local
clients and partners. Existing and
potential clients, partners and suppliers
can also indirectly provide feedback on
the competitors’ strengths and
weaknesses, offering the executives an
opportunity to get a deeper look into
the current market.